Company Incorporation in Spain

Spain is the largest country in Southern Europe, and the second-largest country in Western Europe and the EU. Spain is a low-cost land of opportunity for foreign investors. Spain has one of the most robust economies in the EU, thanks to strong inward investment, a booming manufacturing sector, and a liberal business environment. Spain’s economic annual growth has been outperforming the EU average for a number of years and many foreign entrepreneurs and expats are benefiting from setting up a company in Spain. In terms of solvency and credibility, Spain is in its strongest position in years due to expansive domestic structural reforms.

What are the main types of Company Formations in Spain?
• Public limited company (S.A.)
• Private limited company (S.L.)

What are the main features of a public limited company in Spain (S.A.)?

• Standard structure for large businesses
• Minimum share capital is €60,101.21, at least 25% paid up
• Minimum number of shareholders is one
• Annual audit is required, subject to company size

What are the main features of a private limited company in Spain (S.L.) (Ltd/LLC)?

• Usual format for small and medium businesses
• Minimum share capital is €3,000, all paid up
• Minimum number of shareholders is one
• Annual audit is not usually required

What other types of company formation are there in Spain?

Other business formats, less common but equally valid, are as follows:
• Sole trader – one owner with unlimited liability
• Joint ownership – two or more proprietors with unlimited liability
• General or limited partnership
• Branch or representative office

Spain company benefits:
• Spain has a strong strategic location and deep trade partnerships, with access to the markets in Europe, the Middle East, and North Africa region and ties and trade links to Latin America.
• EU membership, which also grants its privileged access to the world’s largest commercial market.
• Open to Foreign Direct Investment is also welcome in Spain and plays a critical role in U.S.-Spain economic relationship. The Spanish government has adopted a pro-free-trade and pro-investment approach by relaxing business regulations and increasing incentives to attract foreign businesses and investment across all fields.
• Spain also has modernized rapidly over the last few decades due to investments in excellent infrastructure. It boasts some of the world’s finest rail and subway systems. Additionally, it also operates a robust maritime economy, with 46 state-owned ports located on both of Spain’s coasts.
• Commitment to reform, as witnessed Spain has undertaken a variety of key structural reforms and given more autonomy to local regions, harnessing innovation to help diversify the national economy.

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